About eBay

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The Internet has opened a new world in the center of millions of living rooms.*This development gave people the opportunity to be active without leaving the house.*In 1995 the first e-commerce companies emerged, including eBay.*eBay made use of the ability to reach potential customers at home. This made eBay one of the first companies that created a new audience through the reach of the Internet. New sales and marketing techniques were developed that would not be possible without the use of the Internet. The unique strategies and techniques implemented by eBay and how they work are uncovered in the paper. Options missing from the online presence of other companies (brick-and-mortar) become clearer, and maybe added in the future.

Amongst the results are the ways in which users can buy or sell all possible products. A Buyer can choose to Bid or to Buy It Now). These settings, and a final date, are chosen by the Seller. All interested Buyers have access to all bids, although Bidders remain anonymous. All users are able to see the feedback Sellers or Buyers have left on the profiles. A maximum amount can be specified so that the automated system (Bid Assistant) can execute bids without the presence of any Bidder (Vragov, 2009). The Seller can choose to only place the product for a fixed Buy-It-Now price. Thus, Buy It Now disables the advantage of strategic purchasing or rising prices, minus point for both Buyers and Sellers unless used correctly.
Another result was the communication between users on eBay. Users can communicate with the Sellers and other Buyers or users. Communication takes place via chat rooms, links to each others profiles and messages can be left on those profiles. Users can leave comments or feedback in the form of rating. Sellers and Buyers are rewarded with badges (such as Ships Quickly). This function forces Sellers to treat Buyers well and visa versa. This can lead to more prospective customers. Buyers can learn everything about Sellers. Among that information is the number of products sold, number of products currently on sale, location, phone number and shipping options. Links are displayed to each product from the same Seller, as well as similar products (possibly from other Sellers). eBay has created a community that looks a lot like a forum with a response center, groups, discussion boards, news, charities and neighborhoods. Here users take initiative and create content making eBay a richer environment (information), without costing eBay time or money. Neighborhoods and groups bring together users with similar interests, pointing each other to products that they themselves have not been able to find.
Brick and mortar businesses have points on which they can improve by comparing to eBay, and implementing changes. A local thrift store makes it impossible for customers to bid on items. This is a disadvantage to the vendor in several respects. First, other possible interested parties are unaware of the sale of a product. Second, the price does not rise by a bidding war between customers. Third, there are no deadlines attached to any items resulting in unsellable items. Finally, without a search window Buyers looking for a particular object lose large amount of time. And have to search in many different (thrift)stores will have to find that one product.
Brick and mortar businesses without an online presence have no ability to interact with customers, with a phone line as the exception. It is also impossible for costumers to discuss amongst each other. For example, the seller can not change the products or services on the basis of suggestions on discussion boards. Suggestions that can lead to savings within a company. Customers that do not feel involved with the brand is the consequence. These customers are less likely to tell friends about these companies. Businesses with minimal online presence often only provide basic information, although the presence is growing. One can increasingly provide opinions and ratings on products. Generally brick and mortar businesses (possession of a minimal online presence) only have the option to sell a product for a fixed regular price. While sellers on eBay can start increasing the price through an auction. The solution is for those businesses to start participating by opening a 'store' on eBay, it is often only done by small companies with unique products. Larger companies are in possession of multiple products (also of the same product) and have storage, but can reach a larger audience through eBay. A middle ground must be found.

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